Mazda CX5 mini SUV production increased by 40,000 units

Increased demand leads to increased supply. This is exactly what Mazda Motor Corporation has announced for their new Mazda CX5 compact SUV crossover. Production which is currently at 200,000 units will be stepped up to 240,000 units per annum from the company plants Ujina PlantNo.2 while production activities will also commence from Ujina Plant No.1 from March 2013.

CX5 sales have exceeded expectations in the past few months making the company upgrade their annual global sales targets from 160,000 to 190,000 during the current financial year.

Orders from across the globe have been very encouraging specially where Japanese markets are concerned. Similar demand was experienced in Russia which is Mazda’s biggest markets in Europe. Orders went well over 10,000 units making the company take note and increase production to keep up with this demand.

Mazda CX5 did so well that more than 60,000 orders were received in just four months. In Japan the diesel trimmed CX5 has a waiting list that has extended to three weeks while orders for the Gasoline models will take about a month for deliveries to be executed.

However the stronger Yen has threatened the production cost margin and the company is considering new options for production overseas. Currently 70% of their production activities continue in Japan itself.

Read the press release below for more information.

Auto News Release

Mazda to Increase Mazda CX-5 Production Capacity – Ujina Plant No.1 will also produce CX-5 from March 2013

HIROSHIMA, Japan—Mazda Motor Corporation today announced it will increase production capacity of its new crossover SUV, Mazda CX-5, from 200,000 units*1 to 240,000 units per year. This will be achieved by expanding production from Ujina Plant No.2 to also include Ujina Plant No.1. Upgrades to the assembly line are based on Mazda’s manufacturing system innovation called Monotsukuri Innovation*2 and will enable production of new generation SKYACTIV products at Ujina Plant No.1 earlier than anticipated. The move is made in response to increasing demand for the CX-5 in countries all over the world.

The CX-5 is the first model to fully incorporate SKYACTIV TECHNOLOGY.*3 It has gained a reputation for offering both excellent fuel economy and an exhilarating driving experience. Since sales began in February, Mazda has received orders far surpassing initial estimations and upgraded its annual global sales target from 160,000 to 190,000 units for the fiscal year 2012.

As of July 1, CX-5 orders in Japan had reached approximately 24,000 units, more than doubling the annual domestic sales target in only four and a half months from the start of sales. The CX-5 is proving popular in overseas markets as well. For example, in Russia, Mazda’s biggest market in Europe, orders for the model already exceed 10,000 units, drawing close to the annual sales target of 12,000 units for that market.

Mazda’s representative director and chairman of the board, president and CEO, Takashi Yamanouchi said, “I am grateful for the high praise the CX-5 has been receiving from customers all over the world. This production capacity increase for the CX-5 demonstrates that we are working hard to deliver the vehicle to waiting customers as early as we possibly can. It will also help establish a flexible production system that enables us to produce new-generation SKYACTIV products at Ujina Plant No.1. I believe that it shows Mazda is making steady progress in optimizing its automobile manufacturing processes.”

*1 Mazda already announced that it would increase production capacity of the Mazda CX-5 from 160,000 units to 200,000 units in August 2012.
*2 Monotsukuri Innovation is Mazda’s initiative aimed at achieving economies of scale and the flexibility to swiftly respond to changes in market trends. It involves various areas across the company, including development, manufacturing and purchasing. It is a structural reform project which fundamentally changed the way Mazda makes cars and enabled the development of SKYACTIV TECHNOLOGY.
*3 An umbrella term for Mazda’s new-generation technologies, including the SKYACTIV-G gasoline engine, SKYACTIV-D diesel engine, SKYACTIV-DRIVE automatic transmission, the high-performance lightweight SKYACTIV-CHASSIS and the lightweight but highly rigid SKYACTIV-BODY